Argus Research
Daily Spotlight: 223,000 New Jobs in December
The U.S. economy generated 223,000 new jobs in December, ahead of the consensus expectations and in line with our forecast of 220,000. The unemployment rate declined slightly to a cycle-low 3.5%. Average hourly earnings increased nine cents month-to-month and are now 4.6% higher year-over-year (down 50 basis points month-to-month). Revisions to the jobs totals in the two prior months subtracted 28,000 jobs from the economy. In December, jobs gains occurred in leisure and hospitality, healthcare, and construction. Industries notably absent from the outsize-jobs-gains list during the month include technology, financial and professional services. The employment report, though lower month-over-month (as November’s jobs gains were revised to 264,000), suggests that the consumer segment of the economy may remain on a growth track for the next few months, despite the impact of the Federal Reserve rate hikes, the Russian invasion of Ukraine, and low consumer-confidence readings. The news on the inflation front was also positive, as wage growth slowed. Stock futures have switched from red to green since the report was released, this on hopes that the Federal Reserve may be able to steer the economy toward a soft landing.